Coinshares Reports 133% EBITDA Growth in Q2 2024, Sells FTX Claim for £28.7M

Coinshares, a leading European digital asset investment firm, reported strong financial performance in the second quarter of 2024

European digital asset investment firm Coinshares reported strong financial performance in the second quarter of 2024, with revenue and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) showing significant increases. However, the company faced challenges such as an impairment on its Flowbank investment, while also achieving a profitable sale of its FTX claim.

Coinshares Reports 133% EBITDA Growth in Q2 2024, Sells FTX Claim for £28.7M

The digital asset investment firm reported a total revenue of £22.5 million for Q2 2024, which is more than double the £10.7 million reported in the same period the previous year. Gains and other income also saw a substantial rise, reaching £15.2 million, up from £8.2 million in Q2 2023.

The company’s adjusted EBITDA for the quarter stood at £26.6 million, reflecting a 133% increase year-over-year. However, these gains were offset by a £24.8 million loss in principal investments due to the bankruptcy of Flowbank, resulting in net revenue, gains, and other income of £8.9 million. Despite these setbacks, Coinshares successfully sold its FTX claim, achieving a recovery rate of 116%, translating into a £28.7 million return.

Coinshares explained that the sale contributed significantly to the company’s strong bottom line, bringing the total comprehensive income for Q2 2024 to £25.8 million, compared to £5.3 million in the same quarter of the previous year. The firm’s asset management business also remained resilient, with its European physical exchange-traded product (ETP) platform recording its third-best quarter in net flows.

Looking ahead, Coinshares continues to focus on expanding its product suite and enhancing its market presence in both Europe and the United States. The company’s recent acquisition of Valkyrie’s ETP business and ongoing efforts in product development and marketing are expected to support sustained growth. However, the firm remains cautious of potential market volatility and regulatory changes that could impact future performance.

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